Test Your Knowledge – Retail Math Quiz
1.) What are the 6 Pillars of Retail?
2.) A product’s retail price is $79.95 and it costs $42.00. What is the Gross
Margin of this product?
3.) What is the Markup for the same product?
4.) A store’s annual sales are $3,560,250. Monthly inventory is as follows:
Month 
BOM 
EOM 
January 
1,455,764 
1,210,357 
February 
1,210,357 
1,050,894 
March 
1,050,894 
975,620 
April 
975,620 
1,125,735 
May 
1,125,735 
1,024,563 
June 
1,024,563 
967,446 
July 
967,446 
896,278 
August 
896,278 
1,383,369 
September 
1,383,369 
1,432,911 
October 
1,432,911 
1,791,876 
November 
1,791,876 
2,687,987 
December 
2,687,987 
1,375,218 
Based on these numbers, calculate the inventory turns for the year.
Hint: Calculate Average Inventory first.
5.) Utilizing the already calculated Gross Margin, Sales and Average Inventory,
find out what the GMROII would be for this store, for the same year.
6.) We want to utilize GMROF to compare two display fixtures of different
design:
Fixture 1: Oval shape with merchandised area of 7.65 square feet. Sales
generated from this fixture in one month are $3,465 and Gross Margin on those
sales is 43.5%.
Fixture 2: Rectangular shape with merchandised area of 7.20 square feet. Sales
generated from this fixture in one month are $2,987 and Gross Margin on those
sales is 45.6%.
Which fixture is more profitable?
7.) We want to compare the contribution of staff between two stores. Here is the
data we have:
Store 
Sales This Month 
Gross Margin 
Total Payroll 
1 
$270,500 
44.7% 
$44,895 
2 
$343,750 
42.5% 
$55,280 
Which store’s staff is contributing more?
8.) Here is some store data collected through POS and Traffic Counters:
# of people who entered the store  1,362
# of sales tickets generated  398
Total number of units sold  724
Total payroll for the same period  $3,842
Total sales generated  $34,548
Calculate the following:
1. Conversion Rate
2. Average Sales per Transaction
3. Units per Transaction
4. Wage Cost
9.) Here is the overall company data for the 3rd quarter sales:
Month 
Sales 
Last Year 
% Achieved 
Target 
% Achieved 
July 
$2,074 
$1,926 

$2,022 

August 
$1,866 
$1,792 

$1,882 

September 
$2,672 
$2,503 

$2,628 

Total Q3 
$6,612 
$6,221 

$6,532 

Calculate this year’s performance compared to Last Year and compared to Target
for each month and for the 3rd Quarter.
Answers are in the
Retail
Math Made Simple Page. (Please scroll to the bottom of the page.)
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